Fisher & Paykel Healthcare (FPH) H1 2025 earnings summary

Executive summary

• Achieved record first-half operating revenue of $951.2 million, up 18% year-over-year, with net profit after tax rising 43% to $153.2 million, driven by new product launches, strong demand, and elevated hospital census, especially in the US and Northern Hemisphere.

• Launched new products including the 950 system, Airvo 3/M3, and Nova Micro mask in the US, New Zealand, and Canada, supporting growth in both hospital and homecare segments.

• Manufacturing commenced at the Guangzhou, China facility, supporting regional supply and global expansion.

• Interim dividend increased by 3% to 18.5 cents per share, with the dividend reinvestment plan suspended due to strong cash and reduced debt.

• Board changes included the appointment of Mark Cross as director and Audit and Risk Committee chair, and Neville Mitchell as Board Chair.

Financial highlights

• Operating revenue for the half was $951.2 million, up 18% year-over-year (17% in constant currency); net profit after tax reached $153.2 million, up 43% (51% in constant currency).

• Gross margin improved to 61.9%, up 141 basis points year-over-year (198 bps in constant currency), with operating margin rising to 22.9%.

• Operating profit before financing costs increased 43% to $218.1 million.

• Operating cash flow was $233 million, up 49% year-over-year; free cash flow was $169.4 million, a turnaround from -$127.5 million in the prior period.

• Net cash position improved to $50 million from net debt of $32.2 million at March 2024; gearing ratio at -2.9%.

Outlook and guidance

• Full-year operating revenue expected between $1.9 billion and $2.0 billion; net profit after tax projected at $320–$370 million.

• Guidance reflects uncertainty in Northern Hemisphere seasonal hospitalizations, including flu, COVID, and RSV.

• Homecare segment expected to maintain similar growth in the second half as in the first, supported by new mask models.

• Focus remains on returning to a 65% gross margin target while growing expenses below revenue growth.

• Ongoing investment in R&D and infrastructure to support long-term growth.